Voluntary and Open Ownership in Cooperatives is one of the core
principles that guide how cooperatives are formed and managed. It ensures that
cooperatives remain inclusive, democratic, and community-oriented, subject to
some exemptions expressed by law.
Voluntary
and Open Membership vs. Common Bond of Interest in Cooperatives
These two ideas
both relate to cooperative membership, but they emphasize different aspects:
1. Voluntary
and Open Membership (Cooperative Principle)
This is one of
the 7 Cooperative Principles from the International Cooperative Alliance (ICA).
Meaning:
*Voluntary –
People choose to join or leave the cooperative freely, without force or
pressure.
*Open – Membership is open to all persons who are able to use the
cooperative’s services and are willing to accept membership responsibilities.
*No discrimination – Race, gender, religion, political belief, or
economic status should not be a barrier to joining.
*Key Idea - Everyone
qualified is welcome - no one is excluded unfairly.
2. Common
Bond of Interest or “Associational Principle”
While cooperatives are open to all, they are not open to everyone in
general. Why? Because members must share a common interest or purpose.
Meaning:
*Members must
have a shared bond or objective — like being farmers, employees of the same
company, residents of a community, fishermen, vendors, etc.
*This bond
helps build trust, unity, and mutual responsibility.
*The
cooperative is formed by people with similar needs or economic activities.
*Key Idea- Membership
is open - but only to those who share the cooperative’s purpose or field of
activity.
Cooperatives are open, but not for just anybody. They are open to all
individuals who share the cooperative’s common purpose and agree to its
responsibilities.
Simple
Example:
*A teachers'
cooperative: Voluntary and Open; Any teacher can join; they cannot be excluded
for personal reasons like religion or gender.
Common Bond: Only teachers (or employees in the education sector) can
be members — not doctors or farmers.
Cooperatives practice voluntary and open membership to welcome all
eligible individuals without discrimination — but they also require a common
bond of interest to ensure members share the same goals and needs.
Why Not
Everyone Can Be Part of a Cooperative
Many people believe that cooperatives are open to everyone — that
anyone who wants to join should be allowed in. And while this sounds good, it
isn’t entirely true. Cooperatives are built on the principle of voluntary and
open membership, but this openness comes with an important condition: members
must share a common bond of interest.
A cooperative is not just a business; it is a community of people who
face the same challenges and work together for the same goals. Farmers form a
cooperative because they understand the hardship of planting, harvesting, and
selling crops. Teachers form a cooperative because they share the same salary
schedules, loan needs, and workplace conditions. Fisherfolk, drivers, vendors —
each group has its own cooperative because they have something in common that
binds them together.
So yes,
membership is open — but only to those who belong to that shared purpose.
Imagine a farmers’ cooperative suddenly accepting people who do not
farm — a store owner, a government employee, or a business investor who has
never planted rice or held a plow. These people may have good intentions, but
they do not share the same struggles, risks, or needs. They do not understand
the life of a farmer. If too many join, the cooperative might start serving
interests that are no longer about farmers. Slowly, the cooperative loses its
identity.
This is why the law, Republic Act No. 9520 (AN ACT AMENDING THE COOPERATIVE CODE OF THE PHILIPPINES TO BE KNOWN AS THE “PHILIPPINE COOPERATIVE CODE OF 2008”), clearly
states that cooperatives must be formed by people with a common bond of
interest. It could be based on where they live, what they do for a living, or
where they work. This bond is not meant to exclude or discriminate. It is meant
to protect the cooperative and make sure it remains relevant to the people it
serves.
Because when people understand each other — when they have the same
needs, the same dreams — trust is easier to build. Decisions are easier to
make. Problems are easier to solve. And the cooperative becomes stronger.
So, when we say
cooperatives are open to all, what we really mean is: they are open to all who
are part of the group they were created to serve, and who are willing to carry
the responsibilities that come with being a member.
The Ties
That Bind: What Connects Members of a Cooperative
A cooperative is not just a group of people doing business together. It
is a community of individuals who share something deeper — a common bond of
interest. This bond is what holds the cooperative together. It creates unity,
trust, and a shared sense of responsibility. Without it, a cooperative is just
another organization.
In many cooperatives, this bond starts with place, as for example.
People who live in the same barangay or town form a cooperative because they
face the same community problems — high prices in local stores, lack of access
to basic goods, or the need for clean water, credit, or livelihood support.
They know each other. They see each other every day. Their lives are connected
by their community. That is a residential bond.
In other cases, the bond is work or livelihood. Farmers come together
because they all struggle with buying fertilizers, selling crops at fair
prices, or accessing capital. Fishermen, drivers, vendors, and teachers do the
same. They create cooperatives not because they are friends, but because they
share the same daily challenges and opportunities. This is known as an
occupational or associational bond.
There are also cooperatives formed within offices or institutions.
Employees working for the same school, hospital, factory, or government agency
often build a cooperative so they can save money, apply for loans, and support
one another during emergencies. They trust each other because they work under
the same employer, follow the same policies, and depend on the same salaries.
This is called an institutional bond.
Some cooperatives are born from a shared identity or advocacy. These
include cooperatives of women, youth, elderly citizens, or indigenous
communities. Their bond is not just economic — it is social. They come together
because they understand one another’s struggles and stand together for the same
cause.
No matter what form it takes, this common bond is what makes a
cooperative unique. It gives members a sense of belonging. It ensures that
decisions are made not for personal gain, but for the good of all. The
cooperative becomes a reflection of the members’ shared life — their work,
their community, their dreams.
That is why
cooperatives are strong: because they are built not on money alone, but on
trust, shared experiences, and a common purpose.
Not everyone can or should join — and that’s not to keep people out,
but to keep the cooperative true to its purpose.
